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‘Near 100% festive growth in personal loans over 4 years’

Home loans witnessed 40 per cent growth in originations (value) during festive season from Rs 138,544 crore in FY19 to Rs 193,227 crore in FY22, and 21 per cent growth in originations (volume) from 6.7 lakh accounts in FY19 to 8.1 lakh accounts in FY22.

Written by George Mathew | Mumbai |
April 22, 2022 3:47:28 am
Personal loans, CRIF High Mark, Home loans, Business news, Indian express business news, Indian express, Indian express news, Current AffairsGanesh Govekar, Resident Medical Officer Dr. Ketan Naik, Nursing Association president Ikbal Kadiwala, Incharge Head of Orthopaedic department Dr. Jignesh Patel.

Personal loans overtook all other loan products by witnessing a growth of nearly 100 per cent during the festive season (October to December period) from Rs 75,088 crore in FY 19 to Rs 147,236 crore in FY22.

Moreover, personal loans saw a four times growth in originations (volume) from 39.9 lakh accounts in FY19 to 158.1 lakh accounts in FY22, according to CRIF High Mark, a credit information bureau. Significantly, the growth has come despite the Covid pandemic that ravaged the country in the last two years.

Home loans witnessed 40 per cent growth in originations (value) during festive season from Rs 138,544 crore in FY19 to Rs 193,227 crore in FY22, and 21 per cent growth in originations (volume) from 6.7 lakh accounts in FY19 to 8.1 lakh accounts in FY22, it said. Total personal loan outstanding was Rs 33.06 lakh crore as of February 2022, according to the RBI data.

According to the CRIF report, South and West India dominated in originations of new loans. Among the top 10 states, originations (value) were highest in Maharashtra for auto, personal, consumer durable and home loans, and Uttar Pradesh for two-wheeler loans. Among the top 15 districts, most are from southern and western parts of the country, with Jaipur, NCR and Kolkata being the exceptions. Originations (value) was the highest in Bengaluru across all products, with home loans and personal loans dominating, followed by auto loans and consumer durable loans.

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Navin Chandani, MD & CEO, CRIF High Mark, said, “Our data from FY19 – FY22 shows that lending sector is boosted by significant demand across major consumer products during the festive season. It continues to be the most preferred period to make important, high-value purchases.”

There was an increase in originations share (value) of PSU banks and NBFCs from Q3 of FY19 – FY22. Private banks witnessed a decline during the same period. However, PSU banks saw a decline in originations share (volume), whereas private banks and NBFCs saw an increase during the same period

CRIF said there was an increase in originations share (both value and volume) of private banks from Q3 of FY19 – FY22, whereas PSU banks and HFCs observed a decline during the same period.

Consumer durable loans achieved 32 per cent growth in originations (value) from Rs 19,683 crore in FY19 to Rs 26,075 crore in FY22, and 33 per cent growth in originations (volume) from 91.6 lakh accounts in FY19 to 121.9 lakh accounts in FY22. There was an increase in originations share (both value and volume) of private banks from Q3 of FY19 – FY22, and even though the category is dominated by NBFCs, there is a decline in their share

It said two-wheeler loans saw flat growth in originations (value) from Rs 16,393 crore in FY19 to Rs 15,281 crore in FY22 and 29 per cent decline in originations (volume) from 28.7 lakh accounts in Q3 FY19 to 20.4 lakh accounts in Q3 FY22. There was a decline in originations share (both value and volume) of private banks and NBFC – Captives during festive season. NBFC – Others witnessed growth during the same period

Meanwhile, auto loans witnessed flat growth in origination (value) from Rs 54,367 crore in FY19 to Rs 56,420 crore in FY22. Originations (volume) in Q3 FY19, Q3 FY20 and Q3 FY21 remained above 10 lakh accounts. However, in Q3 FY22, it dropped to 8 lakh accounts. There was an increase in originations share (both value and volume) of PSU banks and private banks from Q3 of FY19 – FY22, whereas NBFCs witnessed a decline.

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